Watsco, Inc. (WSO-B) Key Metrics

NYSE: WSO-BValuation, returns, debt and efficiency ratios over 10 years.

WSO-B valuation today

Trailing 12 months · as of October 18, 2026
Market cap
$11.72B
Enterprise value
$13.50B
P/E (TTM)
24.4
Forward P/E
21.2
PEG ratio
1.20
Price / sales
1.6
Price / book
4.3
EV / EBITDA
19.3
Dividend yield
0.64%
$13.20 a year
Beta
1.04

WSO-B key metrics, 2016–2025

Fiscal year ended December 31, 2025 · U.S. dollars

WSO-B returns How much profit the business earns on the capital it uses.

Return on equity−3.7 pts
18.3%
2025 · hover or tap a bar for each year
2016: 18.6% (+0.6 pts)2017: 18.1% (−0.5 pts)2018: 18.4% (+0.3 pts)2019: 17.7% (−0.7 pts)2020: 16.8% (−0.9 pts)2021: 22.2% (+5.4 pts)2022: 28.3% (+6.1 pts)2023: 24.0% (−4.4 pts)2024: 21.9% (−2.0 pts)2025: 18.3% (−3.7 pts)
20162025
Return on invested capital−3.3 pts
22.8%
2025 · hover or tap a bar for each year
2016: 20.3% (+0.6 pts)2017: 21.6% (+1.3 pts)2018: 22.6% (+1.0 pts)2019: 19.0% (−3.6 pts)2020: 18.0% (−1.0 pts)2021: 24.4% (+6.3 pts)2022: 29.8% (+5.4 pts)2023: 26.0% (−3.8 pts)2024: 26.1% (+0.1 pts)2025: 22.8% (−3.3 pts)
20162025
Return on assets−1.9 pts
11.1%
2025 · hover or tap a bar for each year
2016: 10.0% (+0.3 pts)2017: 10.6% (+0.6 pts)2018: 11.5% (+0.9 pts)2019: 10.4% (−1.1 pts)2020: 10.7% (+0.2 pts)2021: 15.0% (+4.3 pts)2022: 18.3% (+3.3 pts)2023: 14.9% (−3.4 pts)2024: 13.0% (−1.9 pts)2025: 11.1% (−1.9 pts)
20162025
Free cash flow margin−2.4 pts
7.4%
2025 · hover or tap a bar for each year
2016: 5.6% (+0.8 pts)2017: 6.6% (+1.0 pts)2018: 3.4% (−3.3 pts)2019: 6.7% (+3.3 pts)2020: 10.2% (+3.6 pts)2021: 5.2% (−5.1 pts)2022: 7.4% (+2.2 pts)2023: 7.2% (−0.2 pts)2024: 9.8% (+2.5 pts)2025: 7.4% (−2.4 pts)
20162025
Cash conversion (OCF / net income)−20.5%
1.15
2025 · hover or tap a bar for each year
2016: 1.52 (+18.7%)2017: 1.45 (−4.6%)2018: 0.70 (−51.6%)2019: 1.37 (+94.5%)2020: 1.98 (+45.2%)2021: 0.83 (−57.9%)2022: 0.95 (+14.0%)2023: 1.05 (+10.1%)2024: 1.44 (+37.6%)2025: 1.15 (−20.5%)
20162025
Asset turnover−12.7%
1.61
2025 · hover or tap a bar for each year
2016: 2.30 (+0.2%)2017: 2.21 (−3.9%)2018: 2.16 (−2.4%)2019: 2.02 (−6.4%)2020: 2.00 (−1.1%)2021: 2.25 (+12.5%)2022: 2.21 (−1.6%)2023: 2.02 (−8.8%)2024: 1.84 (−8.6%)2025: 1.61 (−12.7%)
20162025

WSO-B returns on capital

ROEROICROA

Net income (ROE, ROA) or after-tax operating income (ROIC) divided by the average of the opening and closing balance.

WSO-B debt vs cash

Total debtCash & short-term investments

Debt includes short- and long-term borrowings and, where reported, lease liabilities.

WSO-B cash returned to shareholders

DividendsBuybacksFree cash flow

WSO-B key metrics

2016–2025
Watsco, Inc. key metrics by fiscal year
2025202420232022202120202019201820172016
Valuation
Share price at fiscal year-end$338.85——$252.51$306.82$233.05$181.50$135.25$169.00$148.75
Returns & profitability
Return on equity (ROE)18.3%21.9%24.0%28.3%22.2%16.8%17.7%18.4%18.1%18.6%
Return on invested capital (ROIC)22.8%26.1%26.0%29.8%24.4%18.0%19.0%22.6%21.6%20.3%
Return on assets (ROA)11.1%13.0%14.9%18.3%15.0%10.7%10.4%11.5%10.6%10.0%
Return on tangible assets13.1%13.9%17.6%20.9%17.0%14.1%12.5%15.0%13.9%13.7%
Free cash flow margin7.4%9.8%7.2%7.4%5.2%10.2%6.7%3.4%6.6%5.6%
Income quality (OCF / net income)1.151.441.050.950.831.981.370.701.451.52
Financial health
Total debt$478.8M$447.5M$404.8M$390.5M$369.7M$216.1M$381.4M$136.0M$22.3M$235.8M
Cash & short-term investments$733.3M$781.9M$210.1M$147.5M$118.3M$146.1M$74.5M$82.9M$80.5M$56.0M
Net debt−$254.5M−$334.5M$194.7M$243.0M$251.4M$70.1M$306.9M$53.1M−$58.2M$179.8M
Debt / equity0.170.170.180.170.190.120.270.100.020.23
Debt / assets0.110.100.110.110.120.090.150.060.010.13
Net debt / EBITDA−0.33−0.420.240.280.380.160.780.13−0.150.49
Current ratio4.123.133.362.542.703.003.354.033.213.94
Quick ratio2.181.721.471.021.161.411.361.691.381.76
Interest coverage—37.5161.5384.1631.1323.791.0135.855.693.1
Working capital$2.24B$2.10B$1.68B$1.39B$1.23B$997.3M$1.09B$1.08B$920.9M$925.3M
Invested capital$2.53B$2.32B$2.42B$2.49B$2.25B$1.85B$1.74B$1.40B$1.24B$1.19B
Tangible asset value$2.55B$2.40B$1.94B$1.64B$1.38B$1.20B$1.13B$1.06B$1.01B$713.4M
Net current asset value$1.72B$1.61B$1.28B$1.06B$873.0M$779.9M$705.3M$882.5M$841.5M$617.3M
Capital allocation
Dividends paid$473.8M$423.5M$382.6M$332.4M$294.5M$265.7M$241.4M$209.2M$164.1M$127.6M
Share buybacks (net)$3.7M$39.7M$2.8M$87.1M$1.1M$2.3M$1.5M$3.8M$4.7M$4.0M
Dividend payout ratio95.3%79.0%71.3%55.3%70.3%98.6%98.2%86.1%78.8%69.8%
Dividends + buybacks / free cash flow89.2%62.3%73.2%78.0%90.8%51.7%76.1%138.8%58.5%55.2%
Capex / revenue0.5%0.4%0.5%0.5%0.4%0.3%0.3%0.4%0.4%1.0%
Capex / operating cash flow6.1%3.9%6.3%5.9%6.9%3.1%4.9%10.1%5.9%15.7%
Capex / depreciation0.790.741.011.070.860.630.670.780.812.17
Stock-based compensation / revenue0.5%0.5%0.4%0.4%0.4%0.4%0.4%0.3%0.3%0.3%
SG&A / revenue18.5%16.5%16.3%16.8%16.9%16.5%16.8%16.7%16.5%16.3%
Efficiency
Days sales outstanding42.240.138.736.335.938.639.639.340.140.1
Days of inventory on hand97.189.593.786.575.581.788.885.180.677.8
Days payables outstanding29.528.228.528.524.423.422.222.923.218.9
Cash conversion cycle (days)109.8101.5104.094.287.096.9106.2101.597.599.0
Receivables turnover8.659.099.4310.0610.189.469.219.289.109.11
Payables turnover12.3812.9612.8212.7914.9815.6016.4315.9115.7519.27
Inventory turnover3.764.083.894.224.834.474.114.294.534.69
Asset turnover1.611.842.022.212.252.002.022.162.212.30
Average receivables$837.1M$837.9M$772.5M$722.8M$616.9M$534.5M$517.9M$490.0M$477.1M$463.5M
Average payables$420.7M$430.1M$412.8M$410.2M$307.9M$245.6M$219.9M$215.4M$208.0M$165.3M
Average inventory$1.39B$1.37B$1.36B$1.24B$954.7M$857.3M$879.0M$799.2M$723.2M$679.5M
Intangibles / total assets15.1%14.6%18.1%17.4%20.1%23.3%22.8%25.0%26.6%28.7%

Computed from WSO-B's annual financial statements (latest annual report filed February 27, 2026) and the closing share price on each fiscal year-end, adjusted for stock splits. Figures in U.S. dollars; data from EODHD. Averages use the opening and closing balance of each year.

WSO-B valuation and financial ratios

Based on the latest twelve months, the trailing P/E is 24.4 and the forward P/E is 21.2. Watsco earned a return on equity of 18.3% and a return on invested capital of 22.8% in fiscal 2025. It ended the year with $478.8 million of debt and $733.3 million in cash and short-term investments, a net cash position of $254.5 million. It returned $477.4 million to shareholders: $473.8 million in dividends and $3.7 million in share buybacks, 89% of free cash flow.

See the WSO-B income statement, the WSO-B chart for price history, or the WSO-B stock overview for the latest quote and news.

WSO-B key metrics FAQ

What is Watsco's P/E ratio?

Watsco's trailing P/E ratio is 24.4 based on the last twelve months of earnings (as of October 18, 2026), and its forward P/E is 21.2. At the end of fiscal 2025 it was —.

What is Watsco's return on equity?

Watsco's return on equity (ROE) was 18.3% in fiscal 2025: net income of $497.0 million on average shareholders' equity of $2.7 billion.

What is Watsco's ROIC?

Watsco's return on invested capital was 22.8% in fiscal 2025, using after-tax operating income divided by average debt plus equity minus cash.

How much debt does Watsco have?

Watsco had total debt of $478.8 million at the end of fiscal 2025, a debt-to-equity ratio of 0.17 and more cash than debt.

Does Watsco buy back its shares?

Yes. Watsco spent $3.7 million on net share repurchases in fiscal 2025.

What is Watsco's current ratio?

Watsco's current ratio was 4.12 at the end of fiscal 2025: current assets were 4.12 times current liabilities.

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